- Rise of over 80% recorded for MoneyGram’s digital offer in the last month alone as the effects of the pandemic are noted.
- Digital transfers are now responsible for over a quarter of all money transfers for the firm.
- “We’ve built a valuable digital business that has quickly grown from a fintech start-up to a sizable and profitable piece of the overall business,” said a MoneyGram spokesperson.
Dallas-based cross-border payments firm MoneyGram has revealed that it saw year-on-year transaction growth of more than 80% when it came to digital payments in April.
The firm, which is widely seen as a key and fast-growing player on the online money transfer scene, said that the exact figure in question was 81%.
As April closed, digital transactions were responsible for 28% of the firm’s whole money transfer provision.
According to Alex Holmes, who serves as MoneyGram’s chairman and CEO, it is part of the firm’s “mission” and its “digital transformation”.
”We’ve been on a mission to mobilize the movement of money and accelerate the evolution of digital P2P payments,” he said.
“Over the last few years, we’ve invested heavily in our digital transformation by building the best digital customer experience in the industry and then rapidly launching those capabilities to new markets.”
“We’re proud that these investments have enabled customers to continue sending money for life’s daily needs as global shelter-in-place policies have disrupted everyday life as we all work to prevent the spread of COVID-19,” he added.
Kamila Chytil, who is the firm’s chief operating officer and was described by it as “leader of the company’s digital business”, added that the firm’s digital customers provide it with several advantages.
“We’ve built a valuable digital business that has quickly grown from a fintech start-up to a sizable and profitable piece of the overall business,” she said.
“Compared to our walk-in business, our digital customers have higher retention rates, transact at a higher frequency, and are more likely to refer friends.”
“Consumers are loving the ‘new’ MoneyGram and we’re excited our digital investments are attracting a surge of new customers to our leading brand,” she explained.
MoneyGram’s release is, of course, a positive one given that it shows much-valued business growth during a time of such unprecedented economic uncertainty.
However, it is important to remember that these huge headline figures pertain only to digital transactions.
The firm does also offer what it describes in its press release as “walk-in business”, and growth there is barely touched on – in her statement, Chytil essentially admits that digital transfer customers are more valuable to the firm in some ways.
Perhaps, then, it is a sign of how businesses such as MoneyGram may simply have to become more digi-centric as the pandemic continues and the world begins to return to normal.
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